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This item is crafted by Gnomish engineers (and can only be used by them). It "enlarges" the world - by shrinking you.

Back in the day, people used to use this item with other shrink-effects in PvP to make themselves difficult to target. It was especially awesome as a flag runner in Warsong Gulch. Nowadays, shrinking effects no longer stack and the World Enlarger breaks upon attacking.